* U.S. retail sales data boosts greenback
* Norway's crown falls after Norges Bank flags uncertainty (Updates market action, adds comments from Fed's Bullard)
By Saqib Iqbal Ahmed
NEW YORK, Aug 15 (Reuters) - The dollar recovered from earlyweakness against the safe-haven yen to advance modestly onThursday as better-than-expected U.S. retail sales data temperedconcerns that the U.S. economy could be headed for a recession.
Fears over a recession had spiked on Wednesday, drivinggains in the Japanese currency against the greenback, after theU.S. Treasury yield curve US2US10=TWEB inverted for the firsttime in 12 years. urn:newsml:reuters.com:*:nL8N25A3FD
However, the yen retreated on Thursday after data showedU.S. retail sales surged in July, helping assuage financialmarkets' fears about the U.S. economy, which has been enjoyingthe longest expansion in the country's history. urn:newsml:reuters.com:*:nL2N25A16D
"With the rest of the world sliding into the abyss, the Julyretail sales figures show a resurgent U.S. consumer riding tothe rescue once again," Michael Pearce, senior U.S. economist atCapital Economics, said in a note.
U.S. retail sales rose in July as consumers bought a rangeof goods even as they cut back on motor vehicle purchases, whichcould help ease financial markets' nerves about the health ofthe U.S. economy.
The dollar was up 0.11% against the yen.
The dollar index .DXY , which tracks the greenback versusthe euro, yen, sterling and three other currencies, was up 0.11%at 98.095, close to a two-week high.
The U.S. bond market continued to flash a caution sign with30-year Treasury yields dipping to a record low below 2% andbenchmark 10-year notes dropping to a three-year trough onThursday. urn:newsml:reuters.com:*:nL2N25B166
The inversion of portions of the Treasury bond yield curvethis week would "have to be sustained over a period of time" tobe taken as a "bearish" signal for the U.S. economy, St. LouisFederal Reserve President James Bullard said on Thursday. urn:newsml:reuters.com:*:nS0N1SD009
Elsewhere, Norway's crown weakened after the country'scentral bank, the Norges Bank, said its policy outlook was nowmore uncertain, raising doubts about whether it would raiserates later in 2019.
The crown slipped to a near 18-year low against the U.S.dollar. urn:newsml:reuters.com:*:nL8N25B1Q4urn:newsml:reuters.com:*:nL8N25B1SR
The Australian dollar AUD=D3 was up 0.47% to $0.6779 afterdata showed the Australian economy had added a forecast-busting41,100 new jobs in July. urn:newsml:reuters.com:*:nL4N25B0NV
However, as the China-U.S. trade war raises fears of aglobal recession, businesses run the risk of being caught in aself-fulfilling vicious cycle, a top Australian central bankerwarned on Thursday. urn:newsml:reuters.com:*:nL4N25B0YJ
Meanwhile, sterling rose 0.42% against the dollar, helped bybetter-than-expected retail sales and news that Britain'sopposition Labour Party has begun its bid to bring down PrimeMinister Boris Johnson and stop him from taking Britain out ofthe European Union without a deal. urn:newsml:reuters.com:*:nL8N25B2JI
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Reporting by Saqib Iqbal Ahmed; Editing by Sandra Maler and Leslie Adler) ((email@example.com
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